BTC/USD Price Prediction — Has the Selling of 5,000 BTC Caused the Market Fall?

Price Predictions
Sat, 05/18/2019 - 02:00
Denys Serhiichuk
🔥💣A return to $7,000 happened even faster than anticipated. Read our BTC forecast to remain calm and keep making profit
Cover image via www.123rf.com

Just a few hours ago, Bitcoin and the cryptocurrency market showed a significant pullback, because within 20 minutes the main cryptocurrency dropped sharply by almost 20% on the main exchanges, including Coinbase, Bitfinex, Gemini, and Bittrex.

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As Bitcoin Price Crashes, Were the Recent Gains Just a Bull Trap?

The most tragic situation was at Bitstamp when it reported a sudden collapse down to $6,200. The exchange has already started an investigation of the sale of 5,000 BTC at this price.

What is interesting, people have begun to search "Bitcoin" more on the Internet, according to Google Trends.
 

Bitcoin, blockchain and cryptocurrency popularity by Google Trends

One of the possible reasons for today’s dump was the massive liquidation of FOMO traders, tightly accumulated in long positions.
 

BTC/USD chart by TradingView

On the 30 minute chart, bulls are fighting for the psychological level at $7,000, which can be broken potentially. However, in terms of the technical indicators, RSI is almost in the oversold zone, and the rate is about to fix at the nearest resistance at $7,300. That is for the short-term scenario.

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BTC/USD Price Prediction — Are Bulls Making a Pause Before $10,000?

BTC/USD chart by TradingView

On the daily time frame, the vital consolidation zone formed from September to November 2018 serves as an excellent resistance, meaning there is nothing to worry about in the global perspective. As the price keeps trading above that area, we are in the bullish cycle, which is also confirmed by the MACD indicator moving up.

In the long term, the market picture shows only bullish sentiments, taking into account its technical part and the mood of the crowd. It is likely that by the middle of June we will see 1 BTC at around $9,500.

The price of BTC is trading at $7,053 at the time of writing.

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About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.

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